SAO PAULO, Sept 25 (Reuters) - Brazil antitrust body CADE said on Wednesday it approved meatpacker Minerva's acquisition of slaughtering plants run by rival Marfrig in the country, part of a broader billion-dollar deal involving 16 units in South America.

CADE, however, blocked Minerva from holding Marfrig's Pirenopolis plant, and said that Minerva would have to sell it off for the deal to go through. Minerva said the plant has been closed since 2010, and that it had no plans to reopen.

WHY IT'S IMPORTANT

Brazilian meatpacker Minerva (BEEF3.SA) , opens new tab and Marfrig (MRFG3.SA) , opens new tab are among the largest beef producers in the world.

ADDITIONAL CONTEXT

The firms announced last year an agreement under which Minerva would buy a total of 16 slaughtering plants from Marfrig in South America for 7.5 billion reais ($1.37 billion). Most of these plants process cattle.

In May, Uruguay's antitrust regulator blocked the purchase of the three plants that are located in Uruguay. The decision was not final and Minerva previously said it would appeal.

WHAT'S NEXT

Minerva said in a securities filing on Wednesday it expects to conclude the acquisition of the slaughtering plants in Argentina, Chile and Brazil by the end of October. It did not mention the Uruguayan plants.

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https://www.reuters.com/markets/deals/brazils-antitrust-regulator-greenlights-minerva-purchase-marfrig-plants-2024-09-25/